Kimco Realty Corporation (NYSE: KIM) and Regency Centers Corporation (NYSE:REG) are both mid-cap finance companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, institutional ownership and valuation.
Volatility & Risk
Kimco Realty Corporation has a beta of 0.65, suggesting that its stock price is 35% less volatile than the S&P 500. Comparatively, Regency Centers Corporation has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.
This table compares Kimco Realty Corporation and Regency Centers Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Kimco Realty Corporation||35.51%||7.73%||3.65%|
|Regency Centers Corporation||17.59%||2.82%||1.65%|
Institutional and Insider Ownership
89.4% of Kimco Realty Corporation shares are owned by institutional investors. Comparatively, 91.6% of Regency Centers Corporation shares are owned by institutional investors. 2.9% of Kimco Realty Corporation shares are owned by company insiders. Comparatively, 12.7% of Regency Centers Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings for Kimco Realty Corporation and Regency Centers Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Kimco Realty Corporation||0||7||7||0||2.50|
|Regency Centers Corporation||0||6||3||1||2.50|
Kimco Realty Corporation currently has a consensus target price of $24.25, suggesting a potential upside of 26.61%. Regency Centers Corporation has a consensus target price of $70.50, suggesting a potential upside of 6.09%. Given Kimco Realty Corporation’s higher probable upside, analysts clearly believe Kimco Realty Corporation is more favorable than Regency Centers Corporation.
Earnings and Valuation
This table compares Kimco Realty Corporation and Regency Centers Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Kimco Realty Corporation||$1.17 billion||6.96||$378.85 million||$0.86||22.27|
|Regency Centers Corporation||$614.37 million||18.40||$164.92 million||$0.90||73.83|
Kimco Realty Corporation has higher revenue and earnings than Regency Centers Corporation. Kimco Realty Corporation is trading at a lower price-to-earnings ratio than Regency Centers Corporation, indicating that it is currently the more affordable of the two stocks.
Kimco Realty Corporation pays an annual dividend of $1.08 per share and has a dividend yield of 5.6%. Regency Centers Corporation pays an annual dividend of $2.12 per share and has a dividend yield of 3.2%. Kimco Realty Corporation pays out 125.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Regency Centers Corporation pays out 235.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimco Realty Corporation has increased its dividend for 7 consecutive years and Regency Centers Corporation has increased its dividend for 3 consecutive years. Kimco Realty Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Kimco Realty Corporation beats Regency Centers Corporation on 11 of the 17 factors compared between the two stocks.
About Kimco Realty Corporation
Kimco Realty Corporation is a self-administered real estate investment trust. The Company is engaged in the ownership, management, development and operation of open-air shopping centers, which are anchored generally by discount department stores, grocery stores or drugstores. As of June 30, 2017, the Company had interests in 510 shopping center properties, including 84 million square feet of gross leasable area (GLA), located in 32 states, Puerto Rico and Canada. As of March 31, 2017, the Company had 380 other property interests, primarily through the Company’s preferred equity investments and other real estate investments, totaling 5.8 million square feet of GLA.
About Regency Centers Corporation
Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership. The Company’s properties include Palm Valley Marketplace, Shops at Arizona, Amerige Heights Town Center, Clayton Valley Shopping Center, Five Points Shopping Center, French Valley Village Center, Hasley Canyon Village, Pleasant Hill Shopping Center, Snell & Branham Plaza, Applewood Shopping Center, Kent Place, Black Rock, Spring Valley Shopping Center and Pebblebrook Plaza. As of December 31, 2016, the Company owned all of the Preferred Units of the Operating Partnership and approximately 99.9% of the Units in the Operating Partnership. As of December 31, 2016, it owned direct or partial interests in 307 shopping centers.
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